FirstGroup Sells Two US Subsidiaries to EQT Infrastructure

Posted on 04/23/2021

EQT Infrastructure has agreed to acquire First Student and First Transit, two North American subsidiaries of the UK publicly listed company, FirstGroup plc for US$ 4.6 billion.

First Student is the largest student transportation service provider in North America, providing over 900 million student journeys a year at approximately 1,000 school districts. The Company has 48,000 employees who operate a fleet of over 42,000 school busses and provide an essential service to North American students.

First Transit is a public transit management operator that transports over 300 million passengers annually across around 300 locations in North America. Founded in 1955, First Transit provides essential mobility services to communities, college campuses, businesses, and elderly care facilities that are economical, safe, and environmentally friendly.

Both units being acquired are headquartered in Cincinnati, Ohio.

EQT Infrastructure intends to help the companies by investing in the electrification of its fleet and accelerating its transition to renewable fuel sources in order to support passenger health and reduce environmental impact. The transaction is subject to customary conditions and approvals and is expected to close in Summer 2021.


Morgan Stanley & Co. LLC served as lead financial advisor to EQT Infrastructure in connection with the transaction and Simpson Thacher & Bartlett LLP served as legal counsel. Barclays and BMO Capital Markets Corp. also served as financial advisors to EQT Infrastructure in connection with the transaction.

With this transaction, EQT Infrastructure V is expected to be 20% to 25% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on its target fund size, and subject to customary regulatory approvals.

Keywords: EQT Partners AB.

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